AIMA publishes guide for investor relations professionals

Changes in the way
that client relationships are managed, investment management brands are
built and assets are raised and retained are reflected in a new guide for
investor relations professionals by the Alternative Investment Management
Association (AIMA), the global representative body for alternative asset
managers.

The release of the
AIMA Guide to Sound Practices for Investor Relations comes at a time of
tremendous change in investor relations (IR) at alternative asset management
firms globally.

Investors and fund
managers are increasingly entering into partnerships with one another,
founded on principles of increased transparency, customisation and
co-investment. These trends have led to an evolution in the remit of IR
teams.

The AIMA guide aims
to identify a common set of sound practices that will help investment
managers build a stable investor base, a key pillar of a sustainable hedge
fund business.

Among the topics it
addresses are the structure and responsibilities of the IR function,
investor communications, marketing, fundraising, due diligence,
subscriptions and redemptions.

The guide, which is
available in full to AIMA members, is sponsored by PwC.

Jack Inglis, CEO of
AIMA, said: âThe role of the IR function has never been more critical, or
its remit more extensive, than is the case today. As AIMA research has
found, investors are increasingly calling for relationships with their
external investment managers that may include greater knowledge sharing,
customised solutions, co-investment opportunities, product seeding and/or
equity investing. This is all occurring against a backdrop of regulatory
change and heightened enforcement scrutiny on marketing compliance.â

Damian Regan,
Director at PwC, commented: "The investor relations function is the face
and voice of an investment manager and plays a critical role in building
trusting relationships. The IR role has evolved a great deal over the past
decade, institutionalising and maturing along with the hedge fund industry
itself. The importance of the role has grown, bringing with it increased
standards of professionalism and raised expectations around transparency.

Investor relations
is not a one-size-fits-all function and savvy managers must ensure they
review the guidelines alongside their unique business model, regulatory
jurisdiction and investment strategies."